Popular, actively-traded bonds and high-credit-quality bonds, as well as those from well-known issuers are usually the most liquid, and thus easier to sell. Buying Government Bonds. Exchange traded fund: An investment company, similar to an index mutual fund, which trades on an exchange like stocks. Here are some things to consider when making an investment decision. Similar to individual bonds, bond funds provide investors with the opportunity to collect these interest dividends and capital gains or to reinvest them back into the fund. Use your discretion to decide whether or not the commission fee is excessive or one you are willing to accept. You can build a great portfolio of index funds and pay no more than.